Does modified car insurance cost extra?

Modified car insurance costs extra unless you’re driving a collectible car. Modifications on standard, luxury, or sports cars will cost more because you are increasing the value of the vehicle with parts that aren’t covered under a standard policy. But modified auto insurance for collectible and classic cars can cost less. Learn more and compare modified car insurance rates for free below.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 31, 2020

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Purchasing a new car means that people have an opportunity to turn it into anything they like, and some people do this by modifying their vehicles. For this purpose, some people have added alloy wheels and performance-enhancing essentials.

After doing this, these car owners may be very pleased with what they have accomplished, but this can make it more complicated when they seek to purchase a new car insurance policy. Looking on the internet for cheap car insurance is more difficult after modifications have been made.

Does It Cost More to Insure Modified Cars?

Will having a high performance car increase your insurance? Most of the time it will, but it does not necessarily mean that it always will cost more.

One time when it will cost a lot less to insure a modified vehicle is if the car can be placed in the collectible car category. Enter your ZIP code now to receive several FREE quotes for modified car insurance!

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Modified Collectible Cars Cost Less to Insure

Collectible cars cost much less to insure because these are vehicles that are ordinarily driven only on the weekends to car shows. Even so, the vehicles will be driven on the public roads, so they will need liability insurance according to the states’ laws.

The purpose of the liability coverage is for the policy holder to take financial responsibility in the event that they cause a collision.

Car insurance companies that have collectible car policies also sell optional insurance that will apply toward the collectible car in the event of an accident. If the modified car can be considered a collectible car and is not driven on a regular basis, modified car insurance will not cost more, it will actually cost less.

The Possible Restrictions

People will want to inquire about how the car insurance company requires they use the vehicle to qualify for their policies. Some companies have very tight restrictions for the vehicles under their collectible car policies. Owners of these cars may also be able to find a company that does not have as many strict rules.does modified car insurance cost extra

For example, an owner of a modified car will be able to drive his or her vehicle without regard to mileage or where they are going with some insurance companies. If they have a second vehicle that they use to drive to their workplaces and to the grocery store, they will be able to enjoy driving their vehicles for pleasure. The cars must also be stored in a safe place at night.

Insuring a Modified High-Performance Vehicle

Sometimes, a modified car is a high-performance vehicle. With this being the case, modified car insurance will, most likely, cost extra. When a vehicle has been classified as a high-performance vehicle, it is known to reach excessive speeds. Car insurance companies are wary of insuring vehicles that have the capability of traveling at such high speeds.

What the people at car insurance companies know about high-performance vehicles is that they are the ones that are involved in car collisions with the most serious damages. The result is that these vehicles cost a lot to repair or replace. A modified high-performance vehicle presents even more challenges, and it may lead to several denials for car insurance.

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Some Modifications Raise Rates, Some Do Not

Not all modifications are going to be the cause of increased premiums when people are not purchasing collectible car insurance. For example, the addition of alloy wheels does not increase the price of car insurance. On the other hand, anything that enhances the performance of the vehicle will be something that increases the price of car insurance.

The fact is that when people with modified cars speak to a car insurance representative, they will need to make sure that they inform these representatives of every modification they have done. If they do not do this, they will lose in the amount they will be entitled to receive if the car is ever totaled.

Lower the Risk Profile

People may not be able to do anything to make their modified car require a lower premium, but they can make themselves less of a risk to the car insurance companies. They can:

  • Have an impeccable driving record
  • Never speed or drive recklessly
  • Never be arrested on a DUI charge
  • Park the car in a garage at night
  • Always wear their seat belts
  • Take defensive driving courses

Seek Discounts

They may also qualify for discounts that always lower people’s premiums by a percentage. For example, if they are insuring more than one vehicle with the company, they may qualify for a multi-car discount. If the insurance company also sells other types of insurance such as life insurance, they can qualify for the multi-policy discount.

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Seek Insurance from Those Knowledgeable about Modified Cars

If people know where to look, they can find car insurance companies that understand modified cars and will charge a more reasonable price for the insurance. Once someone has taken an inexpensive vehicle and added $100,000 worth of modifications, these insurance companies know that these people are likely to treat their vehicles very well, and this includes when they are driving.

On the other hand, these car insurance companies also know when a car is more likely to be damaged and the policy holder will need to file a claim. If the vehicle is a street rod, this is the type of vehicle that will be charged the extra cost. The street racer is not the type of vehicle that can be driven very carefully, and they are the target of thieves more often than other types of modified cars.

To find the best car insurance for modified cars, enter your ZIP code to receive several FREE quotes!

Insuring a modified car can cost extra for the premium, but people who seek car insurance from more than one company have a better chance of insuring it for a better price. They can also find more extensive coverage with some companies than others for that more advantageous price. Using our comparison tool is a great step to finding the best modified car insurance, and they can do this right now.

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